Grenke's Expansion into the Thriving US SME Market: A Strategic Move to Capitalize on Untapped Potential

Grenke AG, a global financing partner for small and medium-sized enterprises (SMEs), is making a strategic move to expand its footprint in the United States. Building on its initial presence in Phoenix, Arizona, established in 2019, Grenke is now set to serve the Central, North, and Southeast regions from its new Chicago hub, reflecting the company's ambition to capitalize on the vast potential of the US market.

Unlocking the Vast Potential of the US SME Landscape

Tapping into the World's Largest Leasing Market

The US boasts over 30 million SMEs, more than in all of Europe, making it the largest leasing market globally. Grenke's specialized small-ticket leasing offerings, with contracts averaging under €9,000 and ranging up to €50,000, position the company to tap into a market niche worth several billion US dollars per year. This strategic expansion reflects Grenke's commitment to capitalizing on the enormous potential of the US SME landscape.

Driving Sustainable Organic Growth

Grenke CEO, Dr. Sebastian Hirsch, sees the US market as a key driver of the company's long-term, sustainable organic growth. "There is enormous potential in the US market, featuring over 30 million SMEs. Through our specialized small-ticket offers, we are now taking the next step to tap into a market niche worth several billion U.S. dollars per year," Hirsch said. "We expect the US to be a key driver of our long-term, sustainable organic growth, and to become one of our most important core markets."

Overcoming Pandemic Challenges

Grenke has steadily been making inroads into the US market despite the challenges posed by the COVID-19 pandemic. Its Phoenix office, which serves the western United States, laid the foundation for its expansion into new territories. "The coronavirus pandemic unfortunately slowed our progress slightly over the past three years, but we are now continuing our breakthrough in the US market," said Thomas Sauerteig, Managing Director of the Phoenix location.

Capitalizing on SME Investment Needs

According to Sauerteig, the ongoing investment needs of SMEs, especially in areas like digitalization and the green economy, present significant growth opportunities for leasing offers in the rapidly expanding US economy. "The ongoing investment needs of SMEs – especially in areas like digitalization and the green economy – present significant growth opportunities for leasing offers in the rapidly expanding US economy. We provide US-based specialist resellers attractive financing models that allow their customers to realise investments quickly and easily."

Diversifying into Key Sectors

The new Chicago office will focus on financing a broad range of equipment, including key sectors like hospitality, point-of-sale systems, and medical technology. However, Jürgen Eichinger, Grenke's Managing Director of the Chicago location, points out that office and IT equipment remain the most in-demand categories in the US. "We are placing a strong emphasis on medical technology and green technology sectors, where we are seeing significant interest," Eichinger said. "The conversations we've had over the past few months at trade shows across several states reaffirm our focus."

Ambitious Growth Targets

This year, Grenke aims to generate new business in the US in the mid-single-digit million euro range, with anticipated growth rates well above average for at least the next decade. The company's strategic expansion into the US market reflects its confidence in the vast potential of the SME landscape and its ability to capitalize on the growing demand for specialized financing solutions.